Ethereum layer-2 TVL surpassed the much-anticipated value of $51.58 billion on November 28th, indicating a higher demand and value for the ecosystem.
The level also indicates that investors are becoming increasingly interested in Ethereum-native assets. Additionally, the surge in the value comes at a time when Ethereum price has surged past the $3,600 level.
At the press time, the second biggest cryptocurrency by volume is trading at $3,631.63, up nearly 5.30% as compared to the same time last day.
Ethereum Layer-2 TVL Hits $51.5 Billion
With a cumulative total value locked (TVL) of over $51.5 billion, Ethereum layer-2 (L2) networks have set a new record. From just $16.6 billion in November 2023, cumulative TVL has increased by more than 205%, according to L2beat data.
This increase signifies that the popularity of Ethereum has been growing among investors. In the world of cryptocurrencies and decentralized finance (DeFi), Total Value Locked (TVL) is a crucial indicator that gives information about the total number of assets staked or locked in a specific DeFi protocol or platform. TVL is a measure of the DeFi ecosystem’s general health, liquidity, and user engagement.
Ethereum Price Crosses $3,600 Mark
Ethereum price has crossed its resistance level of $3,400 to hit another high of $3,600, signifying that investors have picked up trading for the second biggest crypto by volume.
The rise to this level comes a little delayed given that investors were expecting a bull run for ETH prices since November 5, when the US 2024 election results were announced.
The election results had given Bitcoin the much-needed rise and had pushed the entire crypto market into a state of optimism. As the price of Bitcoin fluctuates, so does the price of Ethereum and the majority of other significant cryptocurrencies on the market. However, ETH prices were a little slow to pick pace on this investor sentiment.
At present, DeFi’s (Decentralized Finance) growing popularity is one of the main causes of Ethereum’s price increase. Ethereum’s blockchain network is home to numerous DeFi initiatives, and the majority of DeFi-related activity takes place there. In the cryptocurrency market, this has and continues to drive up Ethereum prices.
Ethereum Technical Indicators: What Do They Say?
With the optimism around Ethereum price at present, the token’s technical indicators have also changed to indicate a bullish turn.
The coin’s Fear & Greed Index is currently at 77 (Extreme Greed). Ethereum’s price volatility over the past 30 days was at 11.07%, with 16 out of 30 (53%) days being green.
Data also suggests that the overall sentiment for Ethereum price prognosis is bullish, with 28 technical analysis indicators indicating optimistic signs and two indicating bearish signals.
One well-liked indicator used by analysts for determining if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum wave. With the RSI rating at 70.92 right now, the ETH market is perceived as being overbought.